Corrective Action Plans

Finding 1164382 (2025-002)

Material Weakness 2025

CA

Subrecipient Monitoring Internal Control / Segregation of Duties

2025-002 Reportable Condition — Internal Control: Condition: The Project did not properly prepare the bank reconciliation. Action taken: Tenant Security Deposit account bank reconciliation has been properly reconciled. Contact person: Fred Goodspeed Completion date: November 10, 2025 Explanation of ...

2025-002 Reportable Condition — Internal Control: Condition: The Project did not properly prepare the bank reconciliation. Action taken: Tenant Security Deposit account bank reconciliation has been properly reconciled. Contact person: Fred Goodspeed Completion date: November 10, 2025 Explanation of Disagreement: Not applicable Repeat finding: No

View Audit 373811

Finding 1164381 (2025-001)

Material Weakness 2025

Joshua Tree Apartments

CA

Subrecipient Monitoring Internal Control / Segregation of Duties

2025-001 Reportable Condition — Internal Control: Condition: The Project did not properly prepare the bank reconciliation. Action taken: Operating account bank reconciliation has been properly reconciled. Contact person: Fred Goodspeed Completion date: November 10, 2025 Explanation of Disagreement: ...

2025-001 Reportable Condition — Internal Control: Condition: The Project did not properly prepare the bank reconciliation. Action taken: Operating account bank reconciliation has been properly reconciled. Contact person: Fred Goodspeed Completion date: November 10, 2025 Explanation of Disagreement: Not applicable Repeat finding: N

View Audit 373811

Finding 1164344 (2025-003)

Material Weakness 2025

United Way of the Battle Creek and Kalamazoo Region

MI

Procurement, Suspension & Debarment Allowable Costs / Cost Principles

Management developed and formalized written policies covering payments, procurement, allowability of costs, compensation, and travel costs. These policies clearly outline procedures and approval processes to ensure compliance with Uniform Guidance. They address key areas such as payment processing, ...

Management developed and formalized written policies covering payments, procurement, allowability of costs, compensation, and travel costs. These policies clearly outline procedures and approval processes to ensure compliance with Uniform Guidance. They address key areas such as payment processing, procurement protocols, criteria for allowable costs on federal programs, compensation guidelines, and travel reimbursement rules, ensuring consistency and adherence to federal regulations.

View Audit 373783

Finding 1164341 (2025-002)

Material Weakness 2025

United Way of the Battle Creek and Kalamazoo Region

MI

Allowable Costs / Cost Principles Reporting Significant Deficiency

This was a finding last year. Audit findings were issued in December 2024. There was not time to implement a review process for 2025. Management has agreed upon and developed a review process. Management will implement a formal process requiring an independent review of all federal quarterly grant e...

This was a finding last year. Audit findings were issued in December 2024. There was not time to implement a review process for 2025. Management has agreed upon and developed a review process. Management will implement a formal process requiring an independent review of all federal quarterly grant expenditure reports before submission. The designated reviewer will be a senior staff member or an individual independent of the preparation and approval process. This person will have sufficient expertise in grant management and financial reporting. The reviewer will carefully verify the accuracy of the data, confirm that all expenditures are correctly categorized, ensure compliance with grant terms, and validate calculations.

View Audit 373783

Finding 1164338 (2025-002)

Material Weakness 2025

Edwardsburg Public Schools

MI

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Auditor Description of Condition and Effect. The District was unable to provide documentation to support its consideration of suspension and debarment requirements for all vendors selected for testing. As a result of this condition, the District was exposed to the risk that disbursements of federal ...

Auditor Description of Condition and Effect. The District was unable to provide documentation to support its consideration of suspension and debarment requirements for all vendors selected for testing. As a result of this condition, the District was exposed to the risk that disbursements of federal awards would be made to vendors suspended or debarred by the federal government and subject to disallowance by the grantor. Auditor Recommendation. We recommend that the District verify that any of their vendors with $25,000 spent with federal funds were not suspended or debarred, and that documentation of these procedures be retained. Corrective Action. The District will review vendors over $25,000 spent with federal funds to ensure that they are not suspended or debarred and retain documented support for the procedures performed. Responsible Person. Gail Enders, Finance Director Anticipated Completion Date. June 30, 2025

View Audit 373782

Finding 1164333 (2025-004)

Material Weakness 2025

North Branch Public School

MN

Procurement, Suspension & Debarment Internal Control / Segregation of Duties School Nutrition Programs

SUSPENSION AND DEBARMENT Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Award Period: Year Ended June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Recommendation: We rec...

SUSPENSION AND DEBARMENT Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Award Period: Year Ended June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Recommendation: We recommend the District implement additional procedures to ensure suspension and debarment documentation is retained. Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Actions Planned in Response to the Finding: The District will continue to evaluate their policies and procedures and retain documentation of their review. Official Responsible for Ensuring CAP: Todd Tetzlaff, Director of Finance and Human Resources. Planned Completion Date for CAP: June 30, 2026.

View Audit 373780

Finding 1164329 (2025-002)

Material Weakness 2025

Area Housing Commission

FL

Cash Management HUD Housing Programs Internal Control / Segregation of Duties

Finding 2025-002 - Accounting Controls - capital Fund Grant Management (Cash Management)-ALN 14.872 Public Housing capital Fund - Noncompliance and Significant Deficiency Corrective Action Plan: AHC has assigned two Senior Managers with eloccs secure system) access. Person Responsible: Shlrley Hende...

Finding 2025-002 - Accounting Controls - capital Fund Grant Management (Cash Management)-ALN 14.872 Public Housing capital Fund - Noncompliance and Significant Deficiency Corrective Action Plan: AHC has assigned two Senior Managers with eloccs secure system) access. Person Responsible: Shlrley Henderson, Deputy Director, Arnesha Nuniss and Abe Singh, Ex. Dir. Who is waiting for his eloccs access Anticipated Completion Date: September 10, 2025.

View Audit 373767

Finding 1164328 (2025-001)

Material Weakness 2025

Area Housing Commission

FL

Internal Control / Segregation of Duties

Finding 2025-001- Internal Control Over Maintenance lnventorvy Allowable Costs)-ALN 14.850 Public and Indian Housing - Subsidy - Noncompliance & Significant Deflclency Corrective Action Plan: Area Housing Commlssion hired a full-time lnventory Clerk and wlll be assisted by Andrew Dale, Modernization...

Finding 2025-001- Internal Control Over Maintenance lnventorvy Allowable Costs)-ALN 14.850 Public and Indian Housing - Subsidy - Noncompliance & Significant Deflclency Corrective Action Plan: Area Housing Commlssion hired a full-time lnventory Clerk and wlll be assisted by Andrew Dale, Modernization Coordinator and Abe Singh, Ex. Dir., address the Maintenance lnvntory. Person Responsible: Shavon Harris, lnventory Clerk, Andrew Dale, Modemlxatlon Coordinator, and Abe Sing, Ex. Dir. Anticipated Completion Date: Work In progress completion date April 30, 2026.

View Audit 373767

Finding 1164319 (2025-002)

Material Weakness 2025

Pine River-Backus Public Schools Independent School District No. 2174

MN

Internal Control / Segregation of Duties Reporting School Nutrition Programs

Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Federal Award Identification Number and Year: 212MN061N1199 - 2025 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2174-000 Award...

Federal Agency: U.S. Department of Agriculture Federal Program Name: Child Nutrition Cluster Assistance Listing Number: 10.553 and 10.555 Federal Award Identification Number and Year: 212MN061N1199 - 2025 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2174-000 Award Period: July 1, 2024 - June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Recommendation: We recommend the District review and approve the CLiCS meals counts reports timely and before they are submitted. Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Action Taken in Response to Finding: The District will ensure that all CLiCS submissions are reviewed and approved before submission. Name of the Contact Person Responsible for Corrective Action Plan: Jolene Bengtson, Business Manager Planned Completion Date for Corrective Action Plan: June 30, 2026

View Audit 373743

Finding 1164315 (2025-001)

Material Weakness 2025

Union College

KY

Questioned Costs Student Financial Aid Special Tests & Provisions

2025-001 - Student Financial Assistance Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work-Study Program (c) Federal Perkins Loan (d) Federal Pell Grant Program (e) Federal Direct Student Loans (f) Teacher Education Assistance for College and Higher Education Grants (...

2025-001 - Student Financial Assistance Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work-Study Program (c) Federal Perkins Loan (d) Federal Pell Grant Program (e) Federal Direct Student Loans (f) Teacher Education Assistance for College and Higher Education Grants (TEACH Grants) (a) 84.007 (b) 84.033 (c) 84.038 (d) 84.063 (e) 84.268 (f) 84.379 - Year Ended June 30, 2025 Criteria: 34 CFR 668.162 (d) states: Under the heightened cash monitoring payment method, an institution must credit a student’s ledger account for the amount of Title IV, HEA program funds that the student or parent is eligible to receive, and pay the amount of any credit balance due before the institution submits a request for funds. Condition: We tested 40 students and credit balances were not paid in a timely manner for 8 students (20%). We consider this condition to be a material weakness for the Special Tests and Provisions compliance requirement and is not a repeated finding. Statistical Sampling was not used in making sample selections. Responsible Persons: Andra Butler and Jessica Justice Corrective Action Plan: Management agrees with the finding. Management has already implemented corrective actions to ensure that credit balances caused by federal funds are refunded prior to those federal funds being requested by the University. Financial Aid notifies the Business Office when all postings are complete. The Business Office then runs a disbursement roster and refunds those students with credit balances. Once the refunds have been delivered to the students, the Business Office draws in the funds per the disbursement roster totals. The disbursement roster is retained as support for the drawdown amount Implementation Date: Fall 2025

View Audit 373735 Questioned Costs: $1

Finding 1164309 (2025-001)

Material Weakness 2025

Kansas Health Science Center, Inc.

IL

Student Financial Aid Cash Management Matching / Level of Effort / Earmarking § 200.303

Corrective Action Plan – Kansas Health Science University Identifying Number: 2025-001 Finding: Excess Cash – Student Financial Aid Applicable Regulation: According to Uniform Grant Guidance (34 CFR 668.166), the Secretary considers excess cash to be any amount of Title IV, HEA program funds, other ...

Corrective Action Plan – Kansas Health Science University Identifying Number: 2025-001 Finding: Excess Cash – Student Financial Aid Applicable Regulation: According to Uniform Grant Guidance (34 CFR 668.166), the Secretary considers excess cash to be any amount of Title IV, HEA program funds, other than Federal Perkins Loan program funds, that an institution does not disburse to students within the required timeframe. Institutions must return any amount of excess cash over the one-percent tolerance and any remaining cash after the seven-day tolerance period. Finding: Kansas Health Science University (KHSU) had one instance of excess cash for the Federal Direct Student Loan program. During cash management testing, excess cash balances ranging from $94,646 to $190,735 were identified for the period March 21, 2025, to April 5, 2025. These balances exceeded the one-percent tolerance of prior year drawdowns and were not returned within the required seven-day period. Summary: KHSU identified one instance of excess cash due to delays in returning unused funds. The issue arose because records transmitted to the Common Origination and Disbursement (COD) system were rejected, which prevented the Cash Funding Ledger (CFL) from accurately reflecting a balance owed through G5/G6. Once the rejected records were identified, the Financial Aid OƯice promptly reconciled and corrected them in COD, enabling the CFL levels to reflect the correct balance and allowing the return of excess cash through G5/G6. Corrective Action Planned or Taken: To prevent recurrence of this issue, the Financial Aid Office will implement a proactive measure: - If a similar technical issue is identified in the future, a temporary refund will be initiated in G5/G6 while reconciliation is underway. Once the actual refund amount is confirmed, the final adjustment will be made accordingly. Contact Person: Michelle Miller, Senior Vice President of Enrollment Management mmiller10@tcsedsystem.edu Anticipated Completion Date: September 30, 2025

View Audit 373732

Finding 1164308 (2025-003)

Material Weakness 2025

Calvary University

MO

Student Financial Aid

Management agrees with the auditors’ finding and their recommendation. The CFO will request a waiver for the 2025-2026 school year. Contact Person: Tasha Young, CFO 816-425-6151

View Audit 373721

Finding 1164307 (2025-002)

Material Weakness 2025

Calvary University

MO

Questioned Costs Student Financial Aid

Management agrees with the auditors’ finding and their recommendation. The CFO is working with the TPA to recalculate the R2T4s. The necessary changes detailed in the Possible Asserted Effect section were made in November 2025. Anticipated Completion Date: The corrective action will be completed by ...

Management agrees with the auditors’ finding and their recommendation. The CFO is working with the TPA to recalculate the R2T4s. The necessary changes detailed in the Possible Asserted Effect section were made in November 2025. Anticipated Completion Date: The corrective action will be completed by November 30, 2025. Contact Person: Tasha Young, CFO 816-425-6151

View Audit 373721 Questioned Costs: $1

Finding 1164305 (2025-001)

Material Weakness 2025

Calvary University

MO

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Management agrees with the auditors’ finding and their recommendation. The CFO has worked with the registrar and other University personnel to file the NSLDS reports. Eventually, the CFO updated enrollment status manually. A report was filed in July 2025. Going forward, the NSLDS enrollment status r...

Management agrees with the auditors’ finding and their recommendation. The CFO has worked with the registrar and other University personnel to file the NSLDS reports. Eventually, the CFO updated enrollment status manually. A report was filed in July 2025. Going forward, the NSLDS enrollment status roster reports will be filed timely. If there is a technology issues, enrollment status changes will be input manually by University personnel. Anticipated Completion Date: The corrective action was completed in July 2025. Contact Person: Tasha Young, CFO 816-425-6151

View Audit 373721

Finding 1164304 (2025-001)

Material Weakness 2025

Rivier University

NH

Procurement, Suspension & Debarment

The Controller will revise current processes to include documented review of employees against SAM prior to expending against federal awards. Updated procedures will be documented and Controller’s office staff will be trained on the new procedures. Responsible Party: Steven Perrotta Vice President f...

The Controller will revise current processes to include documented review of employees against SAM prior to expending against federal awards. Updated procedures will be documented and Controller’s office staff will be trained on the new procedures. Responsible Party: Steven Perrotta Vice President for Finance and Administration Phone: (603) 897-8501 Anticipated Completion Date: December 31, 2025

View Audit 373716

Finding 1164291 (2025-002)

Material Weakness 2025

Moraine Valley Community College District Number 524

IL

Matching / Level of Effort / Earmarking Student Financial Aid § 200.303

Corrective Action Planned: The Financial Aid department will distribute an email to the relevant departments upon completion of each financial aid transmittal process, prompting the Information Technology (IT) department to generate direct loan disbursement notifications via email. After emails are ...

Corrective Action Planned: The Financial Aid department will distribute an email to the relevant departments upon completion of each financial aid transmittal process, prompting the Information Technology (IT) department to generate direct loan disbursement notifications via email. After emails are distributed, IT will provide Financial Aid with a report of the notifications sent. The Financial Aid Director or Assistant Director will review and compare the data from the IT notifications report to the financial aid disbursement records to ensure accuracy and completeness. Anticipated Completion Date: June 30, 2026 Responsible Person: Tasha Campbell, Director of Financial Aid campbellt68@morainevalley.edu

View Audit 373670

Finding 1164289 (2025-001)

Material Weakness 2025

Moraine Valley Community College District Number 524

IL

Student Financial Aid Matching / Level of Effort / Earmarking § 200.303

Corrective Action Planned: Responsibility for reporting has been reassigned to a senior staff member. A secondary review process has been established, requiring managerial verification before submission. Additionally, monthly reconciliations will be conducted to ensure that all status changes are re...

Corrective Action Planned: Responsibility for reporting has been reassigned to a senior staff member. A secondary review process has been established, requiring managerial verification before submission. Additionally, monthly reconciliations will be conducted to ensure that all status changes are reported accurately and within the required timelines. Timeline: Reassignment of reporting responsibility: Effective immediately. Establishment of secondary review and reconciliation procedures: Within 30 days. Monthly reconciliation review: No later than November 30, 2025. Anticipated Completion Date: June 30, 2026 Responsible Person: Tasha Campbell, Director of Financial Aid campbellt68@morainevalley.edu

View Audit 373670

Finding 1164276 (2025-001)

Material Weakness 2025

The Master's University & Seminary and Subsidiary

CA

Questioned Costs Student Financial Aid

2025-001 Inaccurate and Untimely Return of Title IV Funds (R2T4) Planned Corrective Action: The current process for completing the Return of Title IV aid is to have the Title IV counselor review and complete the calculation. Then send it to the Director of Financial aid for final review. We have imp...

2025-001 Inaccurate and Untimely Return of Title IV Funds (R2T4) Planned Corrective Action: The current process for completing the Return of Title IV aid is to have the Title IV counselor review and complete the calculation. Then send it to the Director of Financial aid for final review. We have implemented an internal control as of 09/01/2025, that at the close of every month the Office of Financial Aid verifies with registrar’s office that we have been notified of all withdrawn students to ensure that the process has been completed within the 45 days. The misunderstanding with the 49% exemption has been clearly understood, and proper execution of that rule will be implemented. Person Responsible for Corrective Action Plan: Kenneth Piester, Director of Financial Aid Anticipated Date of Completion: 09/01/2025

View Audit 373666 Questioned Costs: $1

Finding 1164274 (2025-004)

Material Weakness 2025

Independent School District #116

MN

School Nutrition Programs Subrecipient Monitoring Cash Management

Finding 2025-004 School Nutrition Program Meal Claims 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding The District will evaluate current procedures for accurately monitoring, recording, and reporting the num...

Finding 2025-004 School Nutrition Program Meal Claims 1. Explanation of Disagreement with Audit Finding There is no disagreement with the audit finding. 2. Actions Planned in Response to Finding The District will evaluate current procedures for accurately monitoring, recording, and reporting the number and type of meals served. 3. Official Responsible Mr. Michael Malmberg, Superintendent, is the official responsible for ensuring corrective action. 4. Planned Completion Date June 30, 2026 5. Plan to Monitor Completion The Board of Directors will be monitoring this Corrective Action Plan.

View Audit 373658

Finding 1164271 (2025-004)

Material Weakness 2025

Isd #2149 Minnewaska Public Schools

MN

Procurement, Suspension & Debarment Internal Control / Segregation of Duties

Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program Title: Child Nutrition Cluster Federal Assistance Listing Number: 10.553, 10.582, and 10.555 Federal Award Identification Number and Year: 1-2149-000, 2025 Pass-Through Agency: Minnesota Department of Education P...

Suspension and Debarment Federal agency: U.S. Department of Agriculture Federal program Title: Child Nutrition Cluster Federal Assistance Listing Number: 10.553, 10.582, and 10.555 Federal Award Identification Number and Year: 1-2149-000, 2025 Pass-Through Agency: Minnesota Department of Education Pass-Through Number(s): 1-2149-000 Award Period: June 30, 2025 Type of Finding: Material Weakness in Internal Control Over Compliance Recommendation: We recommend the District design controls to ensure an adequate review process is in place to review potential contractors to determine they are not suspended or debarred. Views of Responsible Officials: There is no disagreement with the audit finding. Action Taken in Response to Finding: The District will continue to work at ensuring there is a second person to review applications. Name of the Contact Person Responsible for Corrective Action Plan: Drew Olsonawski, Director of Business Services Planned Completion Date for Corrective Action Plan: June 30, 2026

View Audit 373624

Finding 1164260 (2025-001)

Material Weakness 2025

Lake Villa Community Consolidated School District No. 41

IL

Finding No.: 2025-001 Condition: It was noted that the District did not complete the documentation of personnel expenses. Plan: Management will implement procedures to ensure that the documentation of personnel expenses is completed. Anticipated Date of Completion: 6/30/2026 Name of Contact Person: ...

Finding No.: 2025-001 Condition: It was noted that the District did not complete the documentation of personnel expenses. Plan: Management will implement procedures to ensure that the documentation of personnel expenses is completed. Anticipated Date of Completion: 6/30/2026 Name of Contact Person: Anna Kasprzyk, Business Manager/CSBO Management Response: N/A

View Audit 373566

Finding 1164225 (2025-002)

Material Weakness 2025

Stillwater Central School District

NY

Procurement, Suspension & Debarment School Nutrition Programs § 200.214 § 200.314 § 200.318

CAP: The District will establish processes and procedures to ensure compliance with executive orders 12549 and 12689, and 2 CFR Part 180 regarding disbarred vendors. Date: June 30, 2025 Who: Michael Cavanaugh, Business Administrator

View Audit 373523

Finding 1164221 (2025-001)

Material Weakness 2025

Appalachian Mountain Community Health Centers

NC

Special Tests & Provisions Internal Control / Segregation of Duties

In Finding 2025-001, it was reported that the Organization did not properly apply the sliding fee discounts for certain patients with visits to the Organization during the year ended June 30, 2025. Management recognizes the importance of complying with sliding fee guidelines and the Organization’s s...

In Finding 2025-001, it was reported that the Organization did not properly apply the sliding fee discounts for certain patients with visits to the Organization during the year ended June 30, 2025. Management recognizes the importance of complying with sliding fee guidelines and the Organization’s sliding fee policy. In response to Finding 2025-001, proper training will be given to employees, and sliding fee discounts will be reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee policy.

View Audit 373521

Finding 1164219 (2025-003)

Material Weakness 2025

Independent School District No. 001

MN

Procurement, Suspension & Debarment Internal Control / Segregation of Duties School Nutrition Programs

Recommendation: We recommend the District implement additional procedures to ensure suspension and debarment documentation is retained. Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Actions Planned in Response to the Finding: The District will cont...

Recommendation: We recommend the District implement additional procedures to ensure suspension and debarment documentation is retained. Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Actions Planned in Response to the Finding: The District will continue to evaluate their policies and procedures and retain documentation of their review. Official Responsible for Ensuring CAP: Heather Hipp, Business Manager Planned Completion Date for CAP: June 30, 2026

View Audit 373519

Finding 1164211 (2025-001)

Material Weakness 2025

Sherburne and Northern Wright Special Education Cooperative

MN

Procurement, Suspension & Debarment Internal Control / Segregation of Duties Significant Deficiency

SUSPENSION AND DEBARMENT Recommendation: We recommend the District implement additional procedures to ensure suspension and debarment documentation is retained. Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Actions Planned in Response to the Findin...

SUSPENSION AND DEBARMENT Recommendation: We recommend the District implement additional procedures to ensure suspension and debarment documentation is retained. Explanation of Disagreement with Audit Findings: There is no disagreement with the audit finding. Actions Planned in Response to the Finding: The Cooperative will retain documentation of their review Official Responsible for Ensuring CAP: Amy Stahlback, Controller Planned Completion Date for CAP: June 30, 2026

View Audit 373505

Corrective Action Plans

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